Media tech giant InterActiveCorp to invest in MGM Resorts
Las Vegas, Nevada - 11 August 2020 - IAC announced its accumulation of a 12% interest in global hospitality and entertainment company MGM Resorts International for an aggregate of approximately $1 billion.
Data-driven, digital and customer-centric innovations are a key principle of the MGM 2020 plan announced last year and MGM Resorts' executive leadership is excited that IAC recognizes the tremendous value creation potential.
"With the separation of Match Group from IAC, and 'new' IAC emerging with $3.9 billion of cash, no debt, and its opportunistic zeal intact, we are energized and excited to make this investment in MGM. What initially attracted us to MGM, besides its leadership in leisure, hospitality and gaming, was an area that currently comprises a tiny portion of its revenue – online gaming," said Barry Diller, Chairman and Senior Executive of IAC. "IAC's foundational concept of seeking opportunities to build interactive businesses is our base rationale – there is a digital first opportunity within MGM Resorts' already impressive offline businesses, and with our experience we hope we can strongly contribute to the growth of online gaming."
"MGM Resorts presents a unique opportunity for IAC to own a meaningful piece of a preeminent brand in a large category with immense potential to move online," said Joey Levin, CEO of IAC. "We will be a minority investor and a long-term strategic partner, and would welcome the opportunity to contribute to MGM's success in any way that MGM's Board would look favorably on our involvement."
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